Union Properties Mulls $108m Offer For Dubai Autodrome Stake

Union Properties has announced that it has received an offer of AED400 million ($108 million) for a 40 percent stake in its subsidiary Dubai Autodrome, the UAE’s first fully-integrated multipurpose motorsport and entertainment facility.

The Dubai-based developer did not name the interested party but said it is "evaluating the offer" and will discuss it at the next meeting of the board of directors.

Dubai Autodrome, one of the highlights of the Union Properties portfolio, includes a number of world-class racing circuits and is the only one of its kind in Dubai.

It has hosted world-class races, including the FIA GT Championship, European Touring Car Championship, A1 GP, GP2 Asia, Lamborghini Super Trofeo ME, MRF Challenge, Porsche GT3 Cup Challenge ME, the Radical Middle East Cup and the Hankook 24H Dubai Endurance Race.

Khalifa Hasan Al Hammadi (pictured above), chairman of Union Properties, said: "Union Properties has a number of subsidiary companies with added value in vital sectors that help achieve sustainable growth. As previously announced, we are in the process of converting a number of these into private joint stock companies. The offer received to buy a stake in Dubai Autodrome reaffirms the strong position of Union Properties and reflects the growing value of our high-quality assets."

He added: "We are currently evaluating the offer and will discuss in the upcoming meeting with the Board of Directors to allow us to take an appropriate decision in the interest of the company's shareholders. More details will be disclosed in accordance with applicable laws, regulations and agreements."

Directors will also discuss the acquisition of other investment real estate assets in the UAE at the upcoming meeting, he said.

Last month, Union Properties announced plans to list three of its subsidiary companies on the Dubai Financial Market (DFM).

It is looking to convert the legal form of facilities management company ServeU, interior fitout company FitOut, and the Dubai Autodrome, motorsports and entertainment facility, into private joint stock companies.

It comes as the company develops a plan to deal with accumulated losses, which stood at AED2.3 billion ($626 million) at the end of June this year.

Union Properties also reached an agreement with Emirates NBD recently to restructure an outstanding AED946 million debt with the bank.

The developer has also revealed plans to launch its new 2.9 million square foot Motor City Hills project.